Commissioner of the Public Debt and Springing covenant: Difference between pages

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imported>Doug Williamson
(Define 'lite' covenants.)
 
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(CPD). ''US. ''
''Long term funding''.
Head of the Bureau of the Public Debt. The Bureau is the agency responsible for borrowing the money needed to operate the federal government, within the Fiscal Service of the United States Treasury Department.
 
A covenant in a loan agreement which becomes effective on the occurrence of a certain event in the future. Used to enable loan agreements to have fewer and less onerous ('lite') covenants, typically to conform to other loans of the same borrower.  
 
A common springing event is the level of utilisation of a loan facility at which time covenants such as ICR ([[interest cover]] ratio) and [[gearing]] come into effect.
 
Springing covenants are a form of [[contingent covenant]].
 
 


== See also ==
== See also ==
* [[Documentary collection]]
*[[Incurrence covenant]]
* [[Letter of credit]]
*[[Maintenance covenant]]


[[Category:Long_term_funding]]

Revision as of 15:15, 1 August 2015

Long term funding.

A covenant in a loan agreement which becomes effective on the occurrence of a certain event in the future. Used to enable loan agreements to have fewer and less onerous ('lite') covenants, typically to conform to other loans of the same borrower.

A common springing event is the level of utilisation of a loan facility at which time covenants such as ICR (interest cover ratio) and gearing come into effect.

Springing covenants are a form of contingent covenant.


See also